1.LakeVictoria MwanzaKigomaTanga LakeTanzania Dar esTanganyikaSalaam Lake Nyasa Mtwara Tanzania Ports Master PlanFinal ReportTanzania Ports AuthorityFebruary 20099R8821 in association with

2. George Hintzenweg 85P.O. Box 8520 Rotterdam 3009 AMThe Netherlands +31 (0)10 443 36 66 Telephone Fax info@rotterdam.royalhaskoning.com E-mailwww.royalhaskoning.com Internet Arnhem 09122561 CoC Document titleTanzania Ports Master Plan Final ReportDocument short title Status DateFebruary 2009Project name East Africa Trade and Facilitation Project Project ID No P079734 Port Master Plan Study United Republic of TanzaniaProject number 9R8821Client Tanzania Ports Authority Reference 9R8821/R/903617/Rott 3. EXECUTIVE SUMMARYI IntroductionThe Tanzania Ports Authority (TPA) assigned Royal Haskoning in association withArdhi University (formerly known as UCLAS) and Interconsult Ltd. to prepare a PortMaster Plan covering all coastal and manned Lake ports of Tanzania. Key events duringthe course of the study were as follows:Contract signatureMarch 3, 2008Kick-off meetingMarch 26/28, 2008Inception reportApril 25, 2008Interim ReportAugust 8, 2008Interim workshopSeptember 19, 2008TPA workshopOctober 16-18, 2008Draft Final ReportNovember 7, 2008TPA workshopJanuary 9, 2009This Report presents the final conclusions of the study. The following main issues cameto light during the course of the study:The need to increase the capacity of the existing facilities at Dar es Salaam until new facilities can be built elsewhere.The location of new facilities for Dar es Salaam overspill traffic once traffic growth can no longer be accommodated within the existing port footprint.The need for new port facilities at Mtwara to support and stimulate development of the Mtwara Corridor.The role of the smaller coastal ports in supporting local trade, including new terminals for resource-based exports.The potential of the Lakes ports as gateways to the rapidly growing transit countries, particularly Uganda and DR Congo.Before going on to consider these issues, the main factors influencing the future patternof port development in Tanzania are briefly discussed.Tanzania Ports Master Plan 9R8821/R/903617/RottFinal Report-i- February 2009 4. II Perspective on national port developmentNational contextNational transport infrastructureLogistics chains in Tanzania are still very inefficient. Port performance is being severelyimpeded by inability to clear cargo from the ports quickly, and the countrys role as achannel for trade from the land-locked countries1 is impeded by incomplete road and railnetworks, and the poor quality and high cost of land transport. It is essential that overthe next 20 years there is much closer integration of planning across all modes oftransport, as many of the recommendations in this report are conditional on parallelactions being taken in respect of other forms of transport infrastructure.Tanzania has two main railway systems with different gauges, i.e. the Tanzania-ZambiaRailway Authority (TAZARA) with connections to Zambia Railway system, and theTanzania Railway Limited with links to Uganda, DRC Congo, and Kenya. Only limitedareas of the country are rail-connected, and the railway sector has performed badlyduring the last ten years. The infrastructure has deteriorated and services are belowstandard due to the age and obsolescence of the infrastructure and shortage oflocomotives and wagons. Improvements to rail infrastructure and availability of rollingstock (locomotives and wagons) are urgently required.Between 2001 and 2007, TRLs share of dry cargo imports through Dar es Salaam fellfrom 22% to 3%, whilst TAZARAs crept up slightly from 2.5% to 4.5%. Rail should bethe predominant mode for cargo movements in excess of 400-600km, so even allowingfor the limited extent of the rail network, there is scope for increasing rails share of porttraffic (excluding oil) from around 7.5% today to a target of 30-35% in 10-15 years time.This would lead to a significant reduction in inland transport costs, environmentalimprovements, and more efficient port operations.The national trunk road network is undergoing substantial improvements, but stillincludes large sections which are unpaved. Development of a paved and wellmaintained road network connecting the major ports to the transit countries is critical tothe overall success of the ports master plan.Development corridorsTo ensure balanced regional growth, the Tanzanian Government has charged theNational Development Corporation with exploiting the economic potential of threecorridors running inland from the coast as follows: Tanga Corridor Central Corridor Mtwara CorridorThe Tanga Corridor study has identified several large agricultural and mining projects,but these are less well-defined than in the other two corridor studies. There is a desire toboost manufacturing activity in Tanga and Arusha, and a project which has been1Zambia, DR Congo, Malawi, Rwanda, Burundi, Uganda9R8821/R/903617/Rott Tanzania Ports Master PlanFebruary 2009- ii -Final Report 5. around for many years to build a new rail link from Tanga to Musoma via Arusha,providing Uganda with a more direct route to the sea than via Dar es Salaam.The principal investment projects in the Central Corridor are in mining and agriculture,supported by large public investments in energy and transport. The additional trafficwhich they generate will go mainly to Dar es Salaam.Work on the Mtwara Corridor is the most advanced, and seems likely to generatesubstantial volumes of port traffic, mainly for Mtwara but also for ports on Lake Nyasa.Economic development zonesEconomic Development Zones (EDZ) provide an important stimulus to trade and attractinward investment. Thirteen locations have been identified for EDZs, with the highestpriority being given to the one in Bagamoyo, followed by Mtwara and Arusha.If the EDZ program were to increase foreign direct investment in manufacturing by 50%,equivalent to US$ 35 to 40 million of additional investment each year, this wouldgenerate approximately 8,000 to10,000 tons per annum of project cargo. The permanentincrease in trade would depend very much on the type of industry attracted to the zone,but experience elsewhere suggests an order of magnitude rate of build-up of around2,000 to 5,000 tons per annum in each successive year.Urban developmentMost of Tanzanias ports are located close to their city centres, where they contribute totraffic congestion and other adverse environmental effects. Difficulties in acquiring landhave led to cramped and inefficient port layouts, and imposed serious constraints onport expansion plans.At the same time, the ports are important sources of local employment, and havespawned a wide range of support activities nearby. It will therefore be difficult and costlyto move them. In order to achieve a proper balance of development, it is important thatport master plans are not viewed in isolation, but are related to much broader nationaland local planning objectives.Environmental considerationsGeneric environmental impacts connected with port development have been identified,and mitigation measures proposed. However these issues can only be properlyaddressed in the detailed planning and design of projects. At this stage no irrevocableenvironmental constraints have been encountered which prevent the recommendedprojects from proceeding to the next stage of investigation.Competitive position of Tanzanian portsAlthough Tanzanian ports face competition from ports as far away as Durban, theSWOT analysis demonstrates their potential to attract additional transit cargoes for thelandlocked countries PROVIDING they are operated more efficiently and developed incloser harmony with hinterland road and rail connections.Tanzania Ports Master Plan9R8821/R/903617/RottFinal Report - iii - February 2009 6. Vision on port developmentShipping developments.Vessel sizes in global container shipping have grown strongly over the last years. Thelargest vessels sail on East-West routes between the Far East and Europe, while EastAfrica is mostly served by feeders from Middle East ports. It is expected that the presentpattern of shipping corridors will continue during the coming years. However, withincreasing volumes, some direct calls from Asian ports to the North Indian Oceanincluding Tanzania may be introduced. Therefore, the expected maximum vessel sizefor these routes is assessed by us at 5,000 TEU.Port management modelsAt present TPA ports function as a mix between a public service port and landlord port.Most terminals are operated by TPA (service port) and some terminals are operated byprivate parties (e.g. TICTS). Investments in port infrastructure by private parties arehowever very low. Under the Port Act of 2004, Tanzania Ports Authority was formed asa landlord port authority, implying that port operations are handed over to privateterminal operators.In order to further establish this shift, TPA should speedily step back in its role ofsupervising authority and encourage private participation in port development andterminal operations through Public-Private Partnerships (PPP).Physically, terminals should have dedicated facilities and each be fenced and have itsown access gates. All security is to be in place under ISPS regulations, under theresponsibility of the private operator. Ownership of equipment and facilities andemployment of operational staff for terminals are to be transferred from TPA to privateterminal operators under the concession agreement. Such a shift may be undertaken inthe confidence that market forces of free competition and last but not least return oninvestments will drive efficiency improvements and cargo growth in the port.TPA is therefore strongly encouraged to further focus on this shift to increase efficiency,attract private capital and gain market share. The first step would be to give all newlydeveloped terminals (such as berth 13/14 in Dar es Salaam) in concession to privateoperators. The next step could be to segregate operations in the existing port areas andgive terminal operation concessions to one or more private entities.Port developmentDar es Salaam port is by far the largest port in Tanzania, serving all major economiccentres in the country as well as the transit countries. All major existing infrastructurecorridors in Tanzania lead to Dar es Salaam, and it is the only place where both railwaysystems (TAZARA and TRL) join. The port has shown a strong growth over the pastyears, especially in the container sector. This has lead to congestion in the port and asearch for additional land area in or near the port.In a city which is growing strongly and where road capacity is inadequate to cope withthe growing number of vehicles, port development, urban development and transportplans must be closely inter-linked.9R8821/R/903617/Rott Tanzania Ports Master PlanFebruary 2009 - iv - Final Report 7. Land availability for the Tanzanian city ports is limited. Development of a green-field portat a limited distance of the existing ports (but well outside the urban area) would allowunrestricted port development, while connections to existing economic and physicalinfrastructure can easily be made. A green-field port can be started as a modern portfacility to match latest developments in shipping and logistics, without having theheritage of outdated infrastructure, equipment and organization.Port logisticsA port is a node in supply chains, including physical flows (shipping, land transport,(temporary) storage), value added operations (logistics, production) and processes(custom clearance, inspections, payments). TPA is to facilitate the supply chain andimprove the competitiveness of Tanzanian ports by continually improving the quality ofport services on strategic, tactical land operational levels.ICDsAn Inland Container Depot is generally defined as a common user facility offeringservices for handling and temporary storage of containers carried under customscontrol. ICDs are often located in the interiors (well outside the port towns) of the countryand well away from the servicing ports.The present ICDs inside and near Dar es Salaam are used as temporary storage ofcontainers, and basically function as a remote terminal stack. Although necessary giventhe limited space availability in the DSM sea port terminals (TICTS and TPA), theadditional handling and transport between the sea terminal and the ICDs add to the totalcosts of the logistics chain without adding value. With sufficient terminal area availableat the sea port, the ICDs in Dar es Salaam would no longer be required for the presentpurpose.The future network of ICDs will develop further away from the sea port on majortransport axes near the major consumption and production areas. Transit countries mayhave a dedicated ICD either near the border in Tanzania or in the transit country itself.ICDs will develop near EDZs and on major transport corridors, such as near Isaka,Mbeya and Kigoma.Plan periodWhile the master plan gives guidance and direction on the long term development,investment planning must be done on the basis of a five year updated forecast to ensurethat development of port capacity is demand driven. These five year forecasts must befrequently updated by TPA to ensure that sufficient capacity is available ahead ofdemand, without creating over-capacity.Tanzania Ports Master Plan 9R8821/R/903617/RottFinal Report-v- February 2009 8. Traffic forecastsThe Tanzanian ports system comprises:One large international port, Dar es Salaam, with a throughput of 7.1 million tons in 2007Two medium sized coastal ports, Tanga and Mtwara, with throughputs of 445,000 and 90,000 tons respectively in 2007A tail of smaller coastal ports with current throughputs of less than 50,000 tons per annum: Pangani, Kilindoni (Mafia), Kilwa Masoko and Kilwa Kivinje, Rushungi, Lindi and MikindoniLake Victoria ports: Mwanza North and South, Bukoba, Kemondo Bay, Nansio and Musoma, plus 17 smaller unmanned portsLake Tanganyika ports: Kigoma and Kasanga, plus 19 smaller unmanned portsLake Nyasa ports: Itungi, Manda, Liuli and Mbamba Bay, plus 9 smaller unmanned portsThe quality and level of detail of the statistics for the smaller coastal ports and all of theLakes ports is poor, and there is a significant amount of informal trade which has madeit difficult to identify the potential demand for new port facilities.In addition, transit country trade through the Great Lakes ports is only just beginning totake off, and has almost certainly been held down by the poor quality of existing portinfrastructure, a shortage of modern, commercial shipping services, and the poor qualityof road and rail connections from the ports. Much of the existing cargo is still carried onpassenger ferries.Port Liquid Dry Break Container Total,000 TEU bulkbulkbulkDar es Salaam 2,189 1,161 515 3,2597,124 334Tanga9756 1949844510Mtwara 6-63 2190 5Lake Victoria481 Lake TanganyikaNot available108 Lake Nyasa 182007 cargo volumes (,000 tons)9R8821/R/903617/RottTanzania Ports Master PlanFebruary 2009- vi - Final Report 9. In addition, some of the ports handle large numbers of passengers: Dar es Salaamhandled 732,000 passengers in 2007, whilst passenger traffic through the Lakes portswas as follows: Lake 000 passengers 2005-6 Lake Victoria Mwanza206 Nansio189 Bukoba 87 Kemondo Bay 9 Lake Tanganyika Kigoma 16 Lake NyasaItungi7 Mbamba Bay1Since the beginning of the decade peace and macro-economic stability throughout mostof the region has resulted in high traffic growth rates. Between 2001 and 2007 theaverage growth rate for the coastal ports was 9.2% per annum. Container traffic hasbeen growing even faster, at around 13.5% per annum, and there has also been stronggrowth in dry bulk cargoes such as wheat, fertilizers and cement. Liquid bulk traffic(mainly oil) has been growing at an average rate of 5.4% per annum, but break-bulktraffic has been static.Transit traffic to the land-locked countries makes up a growing proportion of Dar esSalaams traffic. Since 2001 it has increased from 10% to 41% of liquid bulks, and from25% to 39% of containers. Dry bulk and break bulk flows to/from the transit countrieshave remained fairly small, and fluctuate from year to year.The traffic forecasts assume a continuation of past GDP growth rates of 6 to 8% perannum in Tanzania and neighbouring countries. Although the short-term forecasts to2013 will be affected by the global recession, its impact is likely to be smaller and slowerthan in developed countries. There is a good chance of a speedy recovery, making thetiming of port development the main issue rather than its form.The traffic forecasts have been based on trend analysis, interviews with leadingbusiness organizations, and studies of individual issues such as: Macro-economic growth and the restructuring of the economy Agriculture, forestry and fisheries resources Energy policy Mining projects Economic development zones Corridor development plans Road and rail infrastructure Transit traffic, including competition from ports in other countries.Low and high forecasts have been made for individual ports, reflecting the envelopewithin which cargo handling is expected to develop. It is emphasized that futureinvestment planning is to be based on annually updated five-year forecasts, with anappropriate level of substantiation and stakeholder commitment.The forecasts are summarized for each individual port separately.Tanzania Ports Master Plan9R8821/R/903617/RottFinal Report - vii - February 2009 10. III Dar es SalaamHigh and low cargo forecasts have been used to demonstrate the high level ofuncertainty associated with future traffic volumes, particularly after 2018.20072013201820232028 High forecast Liquid Bulk2,189 3,724 4,8206,0997,652 Dry Bulk 1,161 2,449 3,6934,7796,056 Break Bulk515 655 934 1,3171,842 Total excl. containers (000 tons) 3,865 6,828 9,447 12,195 15,550 Containers (000 TEU) 334 7751,5542,7284,719 Vehicles (000 units) 41 81 143 230 370 Ferry Passengers (000 )732 9811,2531,5992,040 Cruise Passengers (000) -3182850 Low forecast Liquid Bulk2,189 2,824 3,2513,7904,260 Dry Bulk 1,161 2,020 2,6243,2453,726 Break Bulk515 424 551 741 992 Total excl. containers (000 tons) 3,865 5,268 6,4267,7768,978 Containers (000 TEU) 334 6491,0741,6372,486 Vehicles (000 units) 41 69 106 155 228 Ferry Passengers (000) 732 849 961 1,0871,230 Cruise Passengers (000) -1 81223Dar es Salaam cargo forecasts (,000 tons)The existing footprint of Dar es Salaam port including the planned development ofberths 13-14 is estimated to have the following capacity. Commodity Capacity Liquid bulk10 million tons per annum Dry bulk6.1 million tons per annum Break bulk4.0 million tons per annum Containers1.2 million TEU per annum Vehicles 120,000 units per annumCapacity of Dar es Salaam Ports Existing Footprint(including berths 13-14 and the new SPM)To reach this capacity, significant improvements must be made with regard tooperational efficiency, traffic flows in the port and dwell time reduction. Also changes arerequired to port infrastructure and layout, as discussed below.9R8821/R/903617/RottTanzania Ports Master PlanFebruary 2009- viii - Final Report 11. Liquid bulks Construction of a new single point mooring (SPM), which will handle the majority of black and white oil products as well as crude oil.This SPM is being designed to handle ships of up to 150,000dwt, and is already at thedetailed design stage. Although it will not do away with the need for a small jetty forspecialist oil products such as LPG, and other liquid bulks such as vegetable oil andmolasses such a jetty is desirable anyway for emergency back-up purposes it willsubstantially reduce traffic at the Kurasini Oil Jetty (KOJ).Dry bulks Creation of a specialist dry bulks terminal at berths 5-7 Expansion of grain silo to allow handling of larger vesselsMajor bulk cargoes should no longer be bagged on the quay, but transferred to bulkstorage directly. If required, bagging can take place at the bulk storage facility,independently from the vessel operation.The plan envisages all grains being transported to the existing silo, which would be usedprimarily for intermediate storage to increase the unloading capacity of the quay.Traders would be required to remove the grain as quickly as practical. In order to handlea full shipload, the storage capacity of the existing grain silo should be expanded from30,000 tons to 60,000 tons. Further expansion will be required if the silo is to be used forlong-term storage of grain, an additional demand which could occur if silo operationswere privatized.Dangote cement imports should be transported from berth 7 by conveyor belt to therecently leased packaging area at the back of the port. The conveyor should have anelevation of at least 6m to allow trucks and small equipment to pass underneath.Fertilizers should be stored in a bulk warehouse / Shed 7, from where the product canbe bagged and loaded onto trucks or rail wagons.Other dry bulks can be handled on either of berth 5, 6 or 7 and stored in one of thesheds, depending on allocation and availability.Containers Construction of container berths 13-14 upstream of the Kurasini Oil Jetty (KOJ) Relocation of the KOJ jetty for safety and operational efficiency Development of a large scale ICD outside Dar es SalaamIn view of high traffic growth rates, congestion at the TICTS terminal, the limited amountof storage space available for containers elsewhere in the port, and the inefficiency ofusing ICDs, two additional container berths (berths 13-14) are required as soon aspossible.Tanzania Ports Master Plan9R8821/R/903617/RottFinal Report - ix -February 2009 12. Berths 13-14 provide the only possibility to create additional container terminal capacityon the short and medium term. This additional capacity is required in 2013 to handleforecasted volumes until new terminals can be developed elsewhere (refer Section IV).Delayed development of berths 13-14 could result in congestion, loss of market share ofTanzanian ports and impeded economic development.Once berths 13-14 are operational (2013) TPA should discontinue container operationson berths 1-7 to allow for the growth of other commodities.Nautical access to berths 13-14 will be impeded by KOJ. Navigational safety must beimproved to limit the risk of collision. Also a safety zone must be created with a 260mradius from the KOJ, within which no cargo handling or shipping activity is allowed. Thefollowing options for improving navigational safety have been considered: Widening the approach channel to berths 13-14, so that container ships canmanoeuvre at a safe distance from the moored tankers, and moving the quay linefor berths 13-14 outwards so that it lines up with the KOJ rather than berths 5-11. Shortening the KOJ trestle so that the jetty head is in line with the TICTS andB13-14 terminal. Construction can start after the new SPM is operational. Relocating the oil jetty to the Kigamboni site of the creek, physically separating allliquid bulk activities from the container operationsThe last option relocating the oil jetty to the opposite site of the creek is preferredbecause of the navigational safety, operational safety, optimal use of container terminalarea, and minimal disruption of operations during construction.The need for additional off-dock ICDs to support the container terminals(s) will dependon the ability and willingness of shippers to reduce container dwell times. The situationshould be closely monitored.There is a proposal to construct a large new large ICD for transit traffic at Kisarawe25 km west of the port, where TRL and TAZARA are about 7 km apart. Containerswould be shuttled between the port and ICD by rail only, using a private rail operator.Development costs would be high (US$ 30-40 million) because the area is hilly andsignificant road improvements are required, and the costs would have to be recoveredover a relatively short period (6-8 years) until new container terminal capacity can bedeveloped in the port(s). A site with lower investment costs would be preferable.Break bulks Deepening of berths 1-4In the short term much of the space at Berths 1-4 will be needed for container stacking,but more space will become available for general cargo storage as new facilities aredeveloped for containers and dry bulks.The design depth of berth 1-4 should be increased to 12 m CD. This will require a newquay wall to be built in front of the existing gravity structure.9R8821/R/903617/Rott Tanzania Ports Master PlanFebruary 2009-x- Final Report 13. Ro-Ro / vehiclesConstruction of a new 260m quay in line with the Lighter QuayReclamation of the area behind it to provide additional storage space.Construction of a two multi-storey car parksRo-Ro vessels and specialist vehicle carriers would use the new break-bulk quaybetween berth 1 and the Lighter Quay, with berths 1-4 in reserve.A multi-storey car park for 5,000 vehicles is already planned adjacent to the Malindimarshalling yard, but a second multi-storey car park of comparable size will be requiredto accommodate the forecast growth in demand until a new vehicle terminal can beopened.The feasibility of developing parking areas outside the port Inland Car Depots muchlike the principle of Inland Container Depots should be investigated. Inland car depotscould reduce the requirements for multi-storey car parks inside the port.In the longer term car terminals can be built at another location, most probablyBagamoyo.Logistics areaDevelopment of the Kurasini warehouse area for port logistics and distributionThere is potential to develop the Kurasini warehouse area on the other side of BandariStreet to the port for logistics and distribution activities. This land should be transferredto TPA for port-related activities at the earliest opportunity, as it provides a rare chanceto over-come existing space constraints in the port, and would open up new options forimproving port layout and traffic circulation.PassengersRedevelopment of the waterfront adjacent to the city centreThe waterfront development for passengers, tourists and commercial activities will belocated near the city centre. The development area must lie outside the navigationchannel to the cargo port, and passenger terminals should be located outside of themain port area to avoid security issues.The lighter wharf will remain in use for dhows, coasters and service vessels.Tanzania Ports Master Plan 9R8821/R/903617/RottFinal Report- xi -February 2009 14. Ship repairsAcquisition of new floating dockRelocation of related workshopsA floating dock is the preferred solution for ship repairs. The dock and the relatedworkshops can best be placed on the outer edge of berth 13/14, where sufficient spaceis available and noise and light nuisance is minimized. Alternatively the dock could beplaced in Mtwara.Channel dredgingDeepening of the port access channel from -10.5m to -12.0m CDDeepening of the channel would reduce the number of ships having to wait for the tide,and associated demurrage costs. Deepening to -12.0m CD would allow an estimated85% of all ships in 2028 to enter at all states of the tide, allowing 1.0 m for under-keelclearance.Further deepening to -13.0m CD was considered, along with widening and straighteningof the channel to allow two way operation and longer ships. However, high costs andconstraints on longer-term development at Dar es Salaam suggest that relocating thelarger vessels to new port facilities outside of Dar es Salaam would be a more cost-effective alternative.Traffic circulationImprovement of traffic circulationDevelopment of parking areas outside the portA traffic circulation plan has been prepared based on dedicated in and out gates foreach of the four terminals (break bulk, dry bulk, TICTS and berths 13-14) and a one-wayroad system.Dedicated parking areas for trucks should be provided near each port entrance, andtrucks should only be allowed to enter the port once all documents are in order and thecargo is ready for collection/delivery. Improvements in signing are needed, and a trafficmanagement unit should be created in the Port Managers office to enforce theregulations and remove obstructions.9R8821/R/903617/RottTanzania Ports Master PlanFebruary 2009 - xii - Final Report 15. Proposed traffic circulation patternBetter management of the rail-port interface is required, together with the purchase ofadditional rolling stock and cargo handling equipment, and relocation of rail tracks to theback of the port.Summary of development plan of Dar es Salaam existing footprintThe master plan for development of the existing footprint is shown below.Offshore SPMCrude, oil products LiquidbulkjettyWaterfrontPassengers, cruise, ferriesFloatingdock Berths 5-7Berths 8-11 (TICTS)Berth 13/14Dry bulk Containers Containers-4s1 kLighter wharf r th u lBe ak BDhows, coasterse RoroBrKurasini logisticsValue added logisticsLight manufacturingCar parkTanzania Ports Master Plan9R8821/R/903617/RottFinal Report- xiii -February 2009 16. Recommended actions are summarized below: Key Actions forShort MediumLong Remarks Dar es Salaam 2009-112012-182019-28 Liquid bulk Construction of a new single At detailed design stagepoint mooring (SPM) Dry bulk Creation of a specialist dry Cement, grain, fertilizer and other drybulks terminal at berths 5-7 bulks. No bagging on the quay. Expansion of grain silo Allowing for larger vessel sizes Containers Development of Only location for short term developmentberths 13-14 of container handling capacity, needs to be fast-tracked Relocation of KOJ Preferred relocation to Kigamboni side Develop a large ICD near In Kisarawe or other location. In use until DSM 2018. Break bulk Deepening of berths 1-4 Deepening to -12m CD Vehicles New Ro-Ro quay Creating a dedicated Ro-Ro / vehicle Reclamation Kurasini creek terminal st 1 multi-storey car park In progress, capacity 5,000 cars nd 2 multi-storey car park Determine feasibility of Inland Car Depots as alternative solution Logistics Development of Kurasini Land to be transferred to TPA, gradual warehouse areadevelopment for port related logistics and light industries. Passengers Redevelopment of Avoid negative impact on shipping andwaterfront commercial port operations Ship repairs Acquisition of floating dock Redevelopment of workshops Channel dredging Deepen channel to 12 m Reduce tidal restrictions and waiting timesCD for container vessels and tankers Traffic circulation Traffic circulation plan Traffic plan to include enforcement Parking areas outsideport area9R8821/R/903617/Rott Tanzania Ports Master PlanFebruary 2009- xiv -Final Report 17. IV Development plan Port expansionThe short-term plan for Dar es Salaam (existing footprint) provides sufficient capacity tohandle the expected traffic up to 2016 in the high forecast case, and 2020 in the lowforecast case. After that, a completely new area will have to be opened up for portdevelopment.After examining the whole of the Tanzanian coastline for potential sites, three wereidentified as the most suitable locations for handling Dar es Salaam overspill traffic:Kigamboni (on the other side of the creek to the existing port)BagamoyoMwambani Bay (near Tanga)Consideration was also given to a site at Manza, near the Kenyan border, proposed asthe site for a new port to handle Mombasa as well as Dar es Salaam overspill traffic.However poor land transport infrastructure, high development costs and the politicalchallenges of jointly developing a port which would serve the Kenyan as well as theTanzanian market made this significantly less attractive than the above alternatives.Development scenariosFour port development scenarios were defined based on different combinations of thethree most suitable port sites, as shown in the table below. It was assumed that the newport(s) would handle the Dar es Salaam overspill traffic as well as North Tanzaniastraffic. Development scenarios were therefore based on the combined traffic forecasts ofDar es Salaam and Tanga. Scenario 1Scenario 2Scenario 3 Scenario 4 TangaMwambaniMwambani Mwambani DSMBagamoyoBagamoyoKigamboni Dar es Salaam Existing footprint (incl. berth 13-14)Economic analyses and comparison of non-monetary aspects show that Scenario 4(Bagamoyo and Mwambani) is the preferred development alternative. This is explainedfurther below.Distribution scenarios for the merged Dar es Salaam and Tanga traffic forecasts for thefour scenarios are as follows:Tanzania Ports Master Plan 9R8821/R/903617/RottFinal Report - xv - February 2009 18. High forecast 201320182023 202820132018 2023 2028 Scenario 1 : Development at Kigamboni and Mwambani Bay KigamboniMwambani Bay Dry bulks(000 tons)- - -- - 2,3662,9423,026 Break bulk (000 tons)- - -- - 359 426 516 Containers (000 TEU) -3941,5663,520 - 122 211 361 Vehicles (000 units) -23110250---- Scenario 2 : Development at Bagamoyo onlyTangaBagamoyo(lighterage, coasters, dhows) Dry bulks(000 tons)- -919 2,196 552 626702 786 Break bulk (000 tons)- - --63 98120 145 Containers (000 TEU) -5061,7683,87010 10 10 10 Vehicles (000 units) -23110250---- Scenario 3 : Development at Mwambani Bay onlyMwambani Bay -2,3662,9423,026 -359 426 516 -5161,7783,880 -23110 250 Scenario 4 : Development at Bagamoyo and Mwambani BayBagamoyoMwambani Bay Dry bulks(000 tons)- - -- - 2,3662,9423,026 Break bulk (000 tons)- - -- - 359 426 516 Containers (000 TEU) -3941,5663,520 - 122 211 361 Vehicles (000 units) -23110250----Traffic at the new ports (,000 tons) High forecastThe low forecast for the preferred scenario 4 is shown in the table below. Low forecast201320182023 202820132018 2023 2028 Scenario 4 : Development at Bagamoyo and Mwambani BayBagamoyoMwambani Bay Dry bulks(000 tons)-- - -- 667 1,004 763 Break bulk (000 tons)-- - -- 221 227 241 Containers (000 TEU) --4531,302- 82126 191 Vehicles (000 units) -- 35108----Traffic at the new ports (,000 tons) Low forecast (Scenario 4)In practice the traffic mix is likely to be more varied than shown in the table not leastbecause of the unknown effects of EDZ development at Bagamoyo and Mwambani Bay.However the total tonnages in the high forecast give a reasonable indication of themaximum scale and speed of development required for port planning purposes, whilstthe tonnages in the low forecast have been used to test the financial robustness of thealternative scenarios.9R8821/R/903617/RottTanzania Ports Master PlanFebruary 2009 - xvi - Final Report 19. Layouts and capital cost estimates were developed for each scenario. In the highforecast the difference in capital costs between the most and least expensive schemes,phased over 15 years, is just over US$ 150m.Cost estimatesFor the preferred scheme (Scenario 4) capital expenditure from 2013-28 is aboutUS$ 845m in the high forecast, and US$ 445m in the low forecast. This includessuperstructure and equipment, which could be privately funded, and road and railaccess which would be funded by public entities other than TPA.High forecasts 2013-18 2018-23 2023-28 TotalScenario 1Kigamboni 90 190375655Mwambani Bay 110 2530165Total200 215405820Scenario 2Bagamoyo 200 210365775Scenario 3Mwambani Bay 150 200345695Scenario 4Bagamoyo 170 190320680Mwambani Bay 110 2530165Total280 215350845Low forecastsScenario 4Bagamoyo 100 95 135330Mwambani Bay90 5 20115Total190 100155445Capital cost estimates (rounded, US$ m)Operating and inland transport costsEstimates were made of differences in operating costs between the four scenarios, butthese turned out to be relatively small, of the order of US$ 7-8m per annum by 2028,with Scenario 3 the least expensive and Scenario 4 the most expensive. Differences inoperating costs were caused primarily by differences in maintenance costs (includingmaintenance dredging) and the need to duplicate certain facilities at each separate portsite.The main cost difference between the four scenarios was in inland transport costs.These were modelled on the basis of the following:Origin-destination pattern of the cargo (21 regions in Tanzania plus six transit countries)Assumed modal split, with an increase in rails market share once its current problems have been resolvedDistance-based cost formulae for road and rail transport costs for different types of cargo. These were derived from a mixture of Tanzanian and international data, andTanzania Ports Master Plan 9R8821/R/903617/RottFinal Report- xvii -February 2009 20. allowed for a reduction in unit costs for rail resulting from economies of scale andgeneral efficiency improvements.Discounted cash flowDiscounted cash flow analysis of the capital, operating and land transport costsassociated with the four alternative scenarios showed Scenario 4 (Bagamoyo /Mwambani Bay) to be the lowest cost option in all of the situations tested.Although the cost differences between Scenario 4 (Bagamoyo/Mwambani) and the nextmost expensive Scenario 1 (Kigamboni/Mwambani) are large in absolute terms, they arerelatively small in terms of the total costs considered. On the other hand the costadvantage of Scenario 4 over Scenario 3 (Mwambani Bay only) is overwhelmingbecause of the Mwambani Bays peripheral location in relation to national and transitcountry markets. Evaluation period to 2028 Evaluation period to 2038 NVP @ 5% NPV@10%NVP @ 5% NPV@10% High forecast Scenario 1+1.2% +1.0% +1.4% +1.2% Scenario 2+3.1% +2.9% +3.2% +3.1% Scenario 3+8.5% +7.7%+10.7% +9.6% Scenario 4 - - - - Low forecast Scenario 1+0.8% +0.5% +1.2% +0.9% Scenario 2+2.9% +2.6% +3.2% +2.9% Scenario 3 +12.6%+11.9%+10.7%+10.7% Scenario 4 - - - -Increase in total discounted costs (compared with Scenario 4)Other considerationsOther (non monetary) economic considerations were taken into account to select thepreferred development option, including: Security of supply Level of commercial risk Increased competition Longer-term potential for port development Contribution to regional development Stimulus to Economic Development Zones Impact on urban planning Traffic congestion relief.Some of these criteria favoured different port locations, but on balance they reinforcedthe view that Scenario 4 large scale development of container and vehicle facilities atBagamoyo, combined with smaller scale dry bulk and multi-purpose terminals atMwambani Bay offers the best way forward.9R8821/R/903617/RottTanzania Ports Master PlanFebruary 2009 - xviii - Final Report 21. Preferred ScenarioThe economic analysis and the analysis of other considerations both confirm Scenario 4(Bagamoyo / Mwambani) as the preferred layout. The conceptual layouts for thisscenario at Bagamoyo and Mwambani are shown below:Land NVery shallow areasShallow water ( 14m)AccessChannel & turning circle(s) ChannelContainer terminal areaVehicle/RoRo terminal Vehicles2018 2023202801 kmContainersLayout Scenario 4 Bagamoyo (high forecast)Tanzania Ports Master Plan 9R8821/R/903617/RottFinal Report- xix - February 2009 22. LandShallow waterNChannel & turning circle(s)Container terminal areaBreak bulkDry bulkDry bulk Break BulkAccess 2018 Channel 2028Containers01 kmLayout Scenario 4 Mwambani (high forecast)Financial AnalysesA preliminary financial evaluation of Scenario 4 showed that the basic infrastructure tobe developed by TPA, and the individual terminals which could be funded by eitherprivate investors or TPA, all generated relatively high rates of return, with the possibleexception of the multi-purpose terminal at Mwambani Bay (7% in the low forecast).A more detailed feasibility study for the development of Bagamoyo is in the process ofbeing commissioned. A similar study is needed for Mwambani Bay, as the trafficforecasts for Tanga have a much higher margin of error because of their dependence onlarge dry bulk projects which may or may not go ahead. The Mwambani Bay feasibilitystudy should also update and evaluate proposals for a new rail link between Arusha andMusoma.Although the construction of a new port at Bagamoyo is unlikely to start before 2013, thedevelopment of a green-field site requires considerable amount of preparatory work.Particular attention should be paid to land acquisition and the agreement of a publiclyacceptable resettlement programme, covering not just residential properties but alsopublic buildings such as schools.9R8821/R/903617/RottTanzania Ports Master PlanFebruary 2009- xx - Final Report 23. V TangaThe wide spread in the cargo forecasts between the high and the low forecast for Tangais illustrated below:20132018 20232028 High forecast Existing cargoes1,0751,4151,770 2,242 New projects7561,7812,311 2,341 Total 1,8313,1964,081 4,583 Low forecast Existing cargoes7916621,075 934 New projects513515523 530 Total 1,3041,1771,598 1,464Tanga Cargo Forecast (000 tons)The high forecast growth of dry bulk cargoes will only materialize if direct vessel calls atalongside berths are possible (i.e. the Mwambani Bay scheme goes ahead). If it doesnot, small scale lighterage operations are likely to continue, although for containers thiswill depend on the availability of geared container ships, which are likely to become lesscommon in future.The main issue is whether any investments are needed to create a temporary increasein capacity until a new port can be built at Mwambani Bay. Tanga port is located nearthe city centre, and does not have enough space for expansion. Port development wouldincrease city traffic, and the noise and dust would have negative environmental impact.Investment in fixed assets such as new quays or storage areas is therefore unlikely tobe desirable, although proposals for investment in mobile assets which can be writtenoff quickly, such as cranes and (possibly) lighters, should be considered on their merits.Even when Mwambani Bay has been completed, some traffic may also continue to behandled at Tanga on coasters and dhows, but only for local markets and the Zanzibar /Pemba trade. Key actions ShortMediumLong Remarks Tanga2009-11 2012-182019-28 Maintenance of port equipment Additional barges and pontoons Redevelop Tanga port for Port activities will move to recreational and urban useMwambaniTanzania Ports Master Plan9R8821/R/903617/RottFinal Report - xxi -February 2009 24. VI MtwaraThe forecasts for Mtwara have an even larger spread between the high and low figures,largely because of uncertainty about the viability, form and timing of several largeprojects in the Mtwara Corridor. These include compressed natural gas, bio-diesel,woodchips, hardwood timber, cement, urea, coal and iron ore. Some of the projectscould involve substantially larger ships than those using the port at present.The high and low forecasts for Mtwara are shown in the table below. High forecast 2013201820232028 Liquid bulks 263 421619 867 Dry bulks2,380 4,500 15,05022,850 Break bulk 139 270455 682 Containerized141 229332 387 Total2,923 5,420 16,45624,786 Containers(000 TEU)3449 6876 Low forecast201320182023 2028 Liquid bulks1125 4161 Dry bulks130 5001,500 1,900 Break bulk81 121175 228 Containerized 70 114158 196 Total292 7601,874 2,384 Containers (000 TEU) 1724 3237Mtwara forecasts 000 tonsThe Mtwara Corridor project includes the construction of a railway from Mtwara toMbamba Bay. Although intended primarily to facilitate coal exports, this would also allowMtwara to become a natural gateway to Malawi and parts of Zambia. Mtwara has alsobeen selected as the site for an EDZContainer and break bulk operations can continue in the existing port area, where somelimited expansion is possible to provide sufficient capacity. For dry bulk operations anarea away from the existing port must be found with sufficient land close to the mainroad and (future) rail network. Development of CNG exports will require a dedicated jettyjust east of the existing port.Each of the major dry bulk commodities will have its own handling requirements, and thelarger ones may require their own dedicated terminals. Some of the dry bulk facilitiesmay be funded by major shippers, leaving TPA responsible for the basic portinfrastructure, improvements to the existing port, and any common user bulk terminals.The proposed port development of Mtwara port is shown below.9R8821/R/903617/Rott Tanzania Ports Master PlanFebruary 2009- xxii -Final Report 25. Mtwara Port: - ContainersCNG - Break bulkjettyDry bulk - Liquid bulk importProposed port development MtwaraBecause of uncertainty about the Mtwara Corridor projects, the attraction of gas-relatedindustries, and the speed and type of development envisaged for the EDZ, the mostappropriate layout and development sequence for the port cannot be set out in detail atpresent. It is recommended that TPA and the National Development Corporation (NDC)take the lead in establishing a permanent Working Group for the joint planning ofMtwara port and related economic activities. Key Actions Short Medium Long Remarks Mtwara 2009-112012-18 2019-28 Dangote cement terminalIn progress. Private financing. CNG export jetty Discussions with Artumas in progress. Private financing Woodchips terminal Discussions in progress. Development on new terminal, private financing Other bulks Timing linked to individual industrial projects Establish permanent WorkingTPA and NDC cooperation Group for joint planning of port and corridor developmentTanzania Ports Master Plan9R8821/R/903617/RottFinal Report- xxiii - February 2009 26. VII Small coastal portsPanganiPangani port serves local trade only. No new developments were identified which couldincrease the national strategic importance of the port. To facilitate local trade a basicport facility needs to be developed.Kilindoni (Mafia)No significant trade volumes were identified. However, construction of a jetty is seen asa government obligation to the islands 45,000 inhabitants to allow passenger traffic,improve working conditions, and facilitate trade.The development of a jetty similar to the existing Tanpesca jetty is recommended, withmooring facilities for two vessels and a draft of 3m -CD. Based on bathymetric surveysa location should be selected that minimizes the length of the jetty. A basic facilityshould be also developed in Kisiju, the landing point on the main land for Mafia dhows,KilwaTwo potential bio-energy projects have been identified in the region, initiated by SEKABand Bioshape. These projects could generate significant export volumes of liquid bulk(bio-ethanol) and (mostly containerized) jatropha nuts. Dedicated facilities need to beconstructed in close coordination with the private developers to handle these exports.The existing jetty at Kilwa Masoko needs to be rehabilitated to handle project cargoassociated with these projects and other small scale exports. No developments arerequired at Kilwa Kivinje.Gypsum exports through Rushungi must be monitored, and if required a basic facilityshould be constructed and the access road improved.LindiLindi port presently serves local trade only. No new developments were identified whichcould increase the national strategic importance of the port. To serve local trade thedredging or modification of the existing pier is required.MikindaniNo potential for Mikindani was identified and it is recommended that the site is notdeveloped.9R8821/R/903617/Rott Tanzania Ports Master PlanFebruary 2009- xxiv -Final Report 27. Key recommended actions ShortMedium Long Remarks Small coastal ports2009-11 2012-18 2019-28 Pangani Develop basic mooring facilityLocal use only Kilindoni Develop jetty short jetty in Local use. Social obligation to Kilindoniisland population. Develop basic mooring facilityFacility to serve Mafia trade with in Kisijuthe mainland Kilwa Jatropha nuts Bioshape, preparations in (containers / dry bulk)progress. Private financing. Bio-ethanol export jetty SEKAB, preparations inprogress. Private financing. Jetty rehabilitation Linked to projects above, userrequirements to be determined Lindi Dredge or modify existing pierLocal use only to allow direct berthing Mikindani No actionNo development recommendedTanzania Ports Master Plan 9R8821/R/903617/RottFinal Report- xxv -February 2009 28. VII Lake VictoriaLake Victoria has many public and private ports. Traffic forecasts for the most importantpublic ports are shown below. They assume that container shipping will develop on LakeVictoria within the next 5 years, that there will be substantial improvements to the railservice to Mwanza, and that the public ports will suffer no further loss of market share tothe private ports, some of which are closely linked to shipping services or fish landingactivities. 2013 20182023 2028 High forecast (000 tons) Dry cargo Mwanza South 5418331,1141,491 Mwanza North 152185225273 Bukoba38 46 56 68 Kemondo Bay 32 38 47 57 Nansio19 23 28 34 Liquid bulks Mwanza South405165 84 Musoma202633 42 Total842 1,202 1,5692,050 Low forecast (000 tons) Dry cargo Mwanza South170228305 408 Mwanza North 56524949 Bukoba 25201510 Kemondo Bay201510 5 Nansio 20263342 Liquid bulks Mwanza South 36424856 Musoma 18212428 Total 345403484 597Lake Victoria Traffic Forecasts for Major TPA Ports (000 tons)Mwanza SouthThe existing link span for rail wagon ferries is sufficient and does not require expansion.Rehabilitation of the wooden mooring is required.Container operations are expected to be introduced on Lake Victoria in a coordinatedeffort between private shipping lines and Tanzania, Uganda and Kenya ports. Breakbulk and container operations can best be organized as a multi-purpose terminal, withone berth used for containers and one for break bulk handling. Some additional land forbreak bulk storage and container stacking adjacent to the existing port will be required.Ship building and repair facilities could be further developed on the northern side of theport in combination with the existing floating docks and ship building activities.Although the volumes are small, a liquid bulk jetty could be constructed on the southside of the link span to separate liquid bulk handling from general cargo operations. This9R8821/R/903617/Rott Tanzania Ports Master PlanFebruary 2009- xxvi -Final Report 29. should be built around 2018, when occupancy of the multipurpose terminal becomeshigher.A development scenario for Mwanza South port is shown below.MwanzaSouth Port Ship buildingFloatingrepairdocksGeneral cargoterminal Containerterminal Rail link span Liquid bulk jettyPort development scenario Mwanza South portMwanza NorthMwanza North Port is located close to the city centre, and is mostly used for passengervessels and local cargo. Dredging at both berths is urgently required to allow alongsidemooring of the ferries.There are longer-term plans for a new passenger terminal, which could include shops, abar/restaurant and other commercial developments, and a new Ro-Ro berth suitable forlarger vessels. A potential development plan for Mwanza North port is shown below.Tanzania Ports Master Plan 9R8821/R/903617/RottFinal Report- xxvii - February 2009 30. MwanzaNorth PortRoroPier PassengerterminalKamangaferriesDevelopment of Mwanza North PortBukobaThe port area is completely surrounded by urban development. It is more popular thannearby Kemondo Bay for passengers and local cargo because it is located in the city.However port expansion will require some resettlement of houses and/or a redesign ofthe current port area. A possible layout of the port expansion is shown below. New berthNewberths Existingberths Port area Relocated warehousesDevelopment of Bukoba Port9R8821/R/903617/RottTanzania Ports Master PlanFebruary 2009- xxviii - Final Report 31. Kemondo BayKemondo Bay depends largely on the performance of TRL and the Lake ferry wagons.Unfortunately, neither are performing well at present. The wagon ferry will continue tocall Kemondo Bay, but because Bukoba is the preferred port for passengers and localcargo, the development potential for Kemondo port is considered to be low. Significantinvestments are unlikely to be justified.NansioThe existing pier must be modified to allow proper mooring of the vessel and level(dis)embarkation and (un)loading. This would require extension of the pier, dredging orlowering of the existing pier. A floating pontoon could also be considered.MusomaBecause of the good road connection to Mwanza, the potential for port development inMusoma is low. Construction of the Arusha Musoma railway line would provide anopportunity for further development, but it is not likely that this will happen soon. Key actions ShortMedium Long Remarks Lake Victoria2009-11 2012-18 2019-28 Mwanza South Port Purchase container handling Development of container equipmentshipping could enhance trade Relocate rail yard Area required for other portdevelopment Expansion shipbuilding & Strategic investment to promote repair facilitieslake transport, private financing Develop new oil jetty Improved safety Mwanza North Port Initiate dredging program Urgently required Develop new Ro-Ro berth and Requirements need to be passenger terminal substantiated Bukoba Develop additional quay Requirements need to besubstantiated Kemondo Bay No action Nansio Modify existing berth to allow level (dis)embarkation and cargo handling Musoma No actionTanzania Ports Master Plan 9R8821/R/903617/RottFinal Report- xxix - February 2009 32. IX Lake TanganyikaThe Lake Tanganyika ports handle traffic for DR Congo, parts of Zambia, Burundi and(less directly) Rwanda. Because of the recent history of civil disturbances, the traffichas begun to grow again only recently, and its full potential is difficult to estimate. As aresult, the traffic forecasts for Kigoma and Kasanga shown below are indicative.201320182023 2028 High forecast (000 tons) Kigoma Local38 74 104155 Imports46957 1,3421,883 Exports 134461 647907 Total 2181,492 2,0932,945 Kasanga Total40 100 197 305 Low forecast (000 tons) Kigoma Local2438 53 68 Imports30 5067161,004 Exports 113 305422582 Total 167 8491,1911,654 Kasanga Total27405376Lake Tanganyika Traffic Forecasts for Major TPA Ports (000 tons)KigomaAs in the case of Mwanza, the traffic forecasts for Kigoma assume substantialimprovements to the TRL rail service from Dar es Salaam. The high forecast is veryambitious, and market developments must be closely monitored to ensure the supply ofnew port facilities does not run too far ahead of the growth in demand.In the high forecast berth requirements reach 1,130m in 2028, compared with the 300mavailable now. The best area for expansion is on the North-East side of the port, whereland can be reclaimed along the railway line to create a 700m quay and terminal area.The long-term port development plan is shown below.9R8821/R/903617/Rott Tanzania Ports Master PlanFebruary 2009 - xxx -Final Report 33. 0500 mPossible futureexpansion Kigoma portBreak Bulk / ContainersDevelopment potential of KigomaKasangaThe forecast for Kasanga indicates a volume of 76,000 tons in 2028, which is conditionalon the improvement of road access. Using mechanized handling this volume can easilybe handled on one berth using one crane. Key actions ShortMedium LongRemarks Lake Tanganyika 2009-112012-18 2019-28 Kigoma Upgrading of the roads - Nyankanazi to Kigoma - Mpanda, Uvinza to Kigoma - Tunduma to Sanga & Kasanga Phased development of berths Demand is uncertain, and terminal areadevelopment only whenjustified by committed cargo. Kasanga Hinterland connection Under development.Prerequisite for further portdevelopment. Develop additional handling facilitiesTanzania Ports Master Plan 9R8821/R/903617/RottFinal Report- xxxi - February 2009 34. X Lake NyasaPort development on Lake Nyasa is dependent on the ability of the Mtwara Corridor tocompete with the Nacala Corridor (Mozambique) for Malawis foreign trade; the growthof local/regional commerce; and the upgrading of Lakes shipping services which arecurrently operated mainly by Malawi companies.The cargo forecast for the main Lake Nyasa ports is shown below.2013 2018 2023 2028 High forecast (000 tons) Itungi / Kiwira 144183229 292 Mbamba Bay 25405680 1,102 Low forecast (000 tons) Itungi / Kiwira84 110 142 171 Mbamba Bay 153076 136Lake Nyasa Traffic Forecasts for Major TPA Ports(000 tons)Itungi / KiwiraA choice between Kiwira and Itungi should be made to focus port development in thispart of the lake. Itungi port is faced with continuous sedimentation problems, which willresult in high maintenance dredging costs. Development at Kiwira is expected to be abetter solution provided that the road connection to the site is improved.The high forecast 292,000 tons in 2028 would require operations to be mechanised,using two mobile cranes shared between two berths (120m in total). Each crane has atypical annual capacity of 220,000 tons.Mbamba BayThe high forecast shows a potential cargo of 1.1 million tons through Mbamba Bay, splitbetween dry bulks and break bulk. Depending on the commodity and the type ofmechanization selected, the capacity of a mechanized dry bulk terminal using one(un)loader would be sufficient to handle the dry bulk traffic. Handling of break bulk wouldrequire two or three berths and mobile cranes, depending on vessel sizes and cranecapacity used. Sufficient area is reported to be available near Mbamba Bay port forthese expansions.Because development at Mbamba Bay is closely linked to the Mtwara Corridor, planningresponsibility should be transferred to the Working Group proposed for Mtwara Port.9R8821/R/903617/Rott Tanzania Ports Master PlanFebruary 2009- xxxii - Final Report 35. Summary of Projects Outside of Dar es Salaam/Bagamoyo/Mwambani BayThe projects in the smaller coastal ports and manned lake ports are less well developedthan those in Dar es Salaam, Bagamoyo and Mwambani Bay, which makes it difficult toestimate their costs and prioritise their timing. This is something which needs to be donefairly quickly, by:Setting up a permanent planning organization (the Mtwara Port Working Group) which would coordinate developments at Mtwara and Mbamba Bay with those taking place elsewhere in the Mtwara Corridor.Commissioning more detailed studies for the two most important projects, namely the expansion/modernization of Mwanza South and Kigoma.Verifying the accuracy of existing cargo statistics for the Lakes ports and minor coastal ports, and expanding their scope.Continuing discussions with potential private investors.Consulting with local communities about some of the smaller or less certain projects (Kilindoni, Mwanza North, Bukoba, Kiwira)All of the projects identified by this study are dependent on continuous improvements tothe road and rail networks. The Ministry of Infrastructure Development has a crucial roleto play in co-ordinating all of the necessary infrastructure investments, and fast-trackingthe projects which are most urgently required.Tanzania Ports Master Plan 9R8821/R/903617/RottFinal Report- xxxiii -February 2009 36. 9R8821/R/903617/Rott Tanzania Ports Master PlanFebruary 2009- xxxiv - Final Report 37. CONTENTSPageEXECUTIVE SUMMARYIINTRODUCTION .....................................................................................................I.1 I.1GENERAL ...........................................................................................I.1 I.2OVERVIEW OF TANZANIA PORT SECTOR.....................................I.2 I.3PROJECT METHODOLOGY ..............................................................I.5 I.4CONTENTS OF THIS REPORT .........................................................I.7II PERSPECTIVE ON NATIONAL PORT DEVELOPMENT......................................II.1 II.1 NATIONAL TRANSPORT INFRASTRUCTURE................................II.1 II.1.1 Railways .............................................................................................II.2 II.1.1.1 Tanzania Zambia Railway Authority (TAZARA).................................II.2 II.1.1.2 Tanzania Railways Limited (TRL) ......................................................II.4 II.1.1.3 Isaka inland port .................................................................................II.6 II.1.1.4 New rail links ......................................................................................II.6 II.1.2 Roads .................................................................................................II.8 II.1.3 Pipelines...........................................................................................II.10 II.2 TANZANIA DEVELOPMENT CORRIDORS ....................................II.12 II.2.1 Tanga Corridor .................................................................................II.12 II.2.2 Central Corridor................................................................................II.12 II.2.3 Mtwara Corridor................................................................................II.14 II.3 ECONOMIC DEVELOPMENT ZONES............................................II.16 II.4 URBAN DEVELOPMENT ................................................................II.18 II.5 ENVIRONMENTAL CONSIDERATIONS.........................................II.19 II.5.1 Introduction on Environmental Assessment.....................................II.19 II.5.2 Potential environmental impacts of port development .....................II.20 II.5.3 Possible mitigation measures ..........................................................II.21 II.6 COMPETITIVE POSITION OF TANZANIAN PORTS......................II.22 II.6.1 Introduction.......................................................................................II.22 II.6.2 Kenya ...............................................................................................II.23 II.6.2.1 Port of Mombasa ..............................................................................II.23 II.6.2.2 Lamu Port.........................................................................................II.29 II.6.3 Mozambique.....................................................................................II.30 II.6.3.1 Port of Nacala...................................................................................II.30 II.6.3.2 Port of Beira, Mozambique...............................................................II.34 II.6.4 South Africa......................................................................................II.38 II.6.4.1 Port of Durban ..................................................................................II.38 II.6.5 Other Potential Competitive Ports....................................................II.41 II.6.5.1 Namibia ............................................................................................II.41 II.6.5.2 Angola ..............................................................................................II.41 II.6.6 Summary ..........................................................................................II.41Tanzania Ports Master Plan9R8821/R/903617/RottFinal Report - xxxv -February 2009 38. II.6.7 SWOT Analysis DSM versus Regional Competitive Ports.............. II.43II.6.8 Transhipment Market....................................................................... II.44II.6.8.1 Port Louis, Mauritius........................................................................ II.44II.6.8.2 South Africa ..................................................................................... II.44II.7 BASIS FOR TRAFFIC FORECASTS .............................................. II.44II.7.1 Overview of past trends................................................................... II.45II.7.2 Drivers of port traffic growth ............................................................ II.49II.7.2.1 Tanzania Economic Growth ............................................................ II.50II.7.2.2 Agriculture, Forests and Fisheries................................................... II.52II.7.2.3 Energy ............................................................................................. II.52II.7.2.4 Transit Traffic................................................................................... II.60II.8 VISION ON PORT DEVELOPMENT............................................... II.67II.8.1 Shipping developments ................................................................... II.67II.8.2 Port management models ............................................................... II.68II.8.3 Port development ............................................................................ II.70II.8.4 Port logistics .................................................................................... II.72II.8.5 ICDs................................................................................................. II.73II.8.6 Plan period ...................................................................................... II.74III DAR ES SALAAM ................................................................................................. III.1III.1PORT DESCRIPTION ...................................................................... III.1III.1.1General description .......................................................................... III.1III.1.2Navigational access.......................................................................... III.2III.1.2.1Entrance channel.............................................................................. III.2III.1.2.2Tides, wind and waves ..................................................................... III.4III.1.2.3Vessel statistics .............................................................................. III.11III.1.3Port infrastructure ........................................................................... III.13III.1.3.1Berths 1-11 ..................................................................................... III.13III.1.3.2Storage areas ................................................................................. III.18III.1.3.3Container yards .............................................................................. III.19III.1.3.4Grain terminal ................................................................................. III.25III.1.3.5Kurasini Oil Jetty (KOJ) .................................................................. III.26III.1.3.6SPM ................................................................................................ III.26III.1.3.7Dockyards....................................................................................... III.27III.1.3.8Lighter wharf ................................................................................... III.28III.1.4Terminal operations........................................................................ III.28III.1.4.1Berth occupancy............................................................................. III.29III.1.4.2Liquid bulk handling........................................................................ III.30III.1.4.3Dry bulk handling............................................................................ III.31III.1.4.4Break bulk handling ........................................................................ III.32III.1.4.5Motor vehicles ................................................................................ III.35III.1.4.6Containers ...................................................................................... III.36III.1.5Land access and infrastructure ...................................................... III.39III.1.5.1Rail.................................................................................................. III.39III.1.5.2Road Access .................................................................................. III.41III.1.6Ongoing development projects....................................................... III.439R8821/R/903617/RottTanzania Ports Master PlanFebruary 2009 - xxxvi -Final Report 39. III.2FORECASTS ..................................................................................III.46 III.2.1Liquid Bulks .....................................................................................III.46 III.2.2Dry Bulks .........................................................................................III.50 III.2.3Break Bulk Cargo ............................................................................III.53 III.2.4Motor Vehicle Forecasts .................................................................III.56 III.2.5Containers .......................................................................................III.57 III.2.6Passengers .....................................................................................III.66 III.2.7Fish..................................................................................................III.67 III.2.8Summary .........................................................................................III.72 III.3PORT REQUIREMENTS ................................................................III.73 III.3.1Nautical requirements .....................................................................III.73 III.3.2Terminal requirements ....................................................................III.74 III.3.2.1Liquid bulk .......................................................................................III.75 III.3.2.2Dry bulk ...........................................................................................III.76 III.3.2.3Break Bulk .......................................................................................III.77 III.3.2.4Motor vehicles .................................................................................III.78 III.3.2.5Containers .......................................................................................III.78 III.3.2.6Passengers .....................................................................................III.80 III.3.2.7Fish..................................................................................................III.81 III.3.2.8Summary .........................................................................................III.82 III.4DAR ES SALAAM DEVELOPMENT OF EXISTINGFOOTPRINT....................................................................................III.83 III.4.1Liquid bulk .......................................................................................III.84 III.4.2Dry bulk ...........................................................................................III.88 III.4.3Break bulk .......................................................................................III.89 III.4.4Motor vehicles .................................................................................III.89 III.4.5Containers .......................................................................................III.90 III.4.6Passengers .....................................................................................III.91 III.4.7Dhows / lighters...............................................................................III.91 III.4.8Kurasini logistic area .......................................................................III.91 III.4.9Traffic circulation .............................................................................III.91 III.4.10 Inland Container Depots .................................................................III.92 III.4.11 Dry docking facilities .......................................................................III.93 III.5CONCLUSIONS & RECOMMENDATIONS ....................................III.95 III.6RECOMMENDED ACTIONS ..........................................................III.97IV NEW PORT DEVELOPMENT .............................................................................. IV.1 IV.1 EXPANSION POSSIBILITIES.......................................................... IV.1 IV.1.1 Expansion in Dar es Salaam............................................................ IV.1 IV.1.2 Alternative port locations .................................................................. IV.3 IV.1.2.1 Potential port development locations ............................................... IV.3 IV.1.2.2 Manza............................................................................................... IV.6 IV.1.2.3 Mwambani ........................................................................................ IV.8 IV.1.2.4 Bagamoyo ...................................................................................... IV.10 IV.1.2.5 Kilwa Masoko ................................................................................. IV.13 IV.1.2.6 Mtwara............................................................................................ IV.13 IV.1.3 Comparison of potential container port development sites ............ IV.13Tanzania Ports Master Plan 9R8821/R/903617/RottFinal Report- xxxvii -February 2009 40. IV.2 ALTERNATIVE DEVELOPMENT SCENARIOS............................IV.15IV.2.1 Scenarios definition ........................................................................IV.15IV.2.1.1 Scenarios........................................................................................IV.15IV.2.1.2 Cargo split.......................................................................................IV.17IV.2.1.3 Layout development .......................................................................IV.19IV.2.2 Scenario 1 Kigamboni / Mwambani.............................................IV.20IV.2.3 Scenario 2 Bagamoyo .................................................................IV.25IV.2.4 Scenario 3 Mwambani .................................................................IV.28IV.2.5 Scenario 4 Bagamoyo / Mwambani.............................................IV.31IV.3 ENVIRONMENTAL CONSIDERATIONS .......................................IV.35IV.3.1 Dar es Salaam ................................................................................IV.35IV.3.2 Mwambani ......................................................................................IV.38IV.3.3 Bagamoyo.......................................................................................IV.39IV.4 ECONOMIC EVALUATION OF PORT DEVELOPMENT SCENARIOS...................................................................................IV.42IV.4.1 Approach to Evaluation ..................................................................IV.42IV.4.2 Capital Cost Estimates ...................................................................IV.42IV.4.3 Operating Cost Estimates...............................................................IV.44IV.4.4 Land Transport Costs .....................................................................IV.46IV.4.5 Modal Split of Cargoes ...................................................................IV.48IV.4.6 Costs of Road and Rail Transport ..................................................IV.51IV.4.7 Summary of Transport Costs..........................................................IV.54IV.4.8 Discounted Cost Comparison.........................................................IV.55IV.5 PREFERRED DEVELOPMENT SCENARIO .................................IV.57IV.5.1 Other economic considerations ......................................................IV.57IV.5.2 Evaluation of Scenarios..................................................................IV.61IV.6 FINANCIAL EVALUATION OF PORT DEVELOPMENT OPTIONS........................................................................................IV.62IV.6.1 Capital Costs ..................................................................................IV.62IV.6.2 Operating Costs..............................................................................IV.65IV.6.3 Revenues........................................................................................IV.68IV.6.4 Financial Evaluation .......................................................................IV.73IV.7 SUMMARY AND CONCLUSIONS .................................................IV.79IV.8 RECOMMENDED ACTIONS..........................................................IV.80V TANGA...........................................................................................................V.1V.1PORT DESCRIPTION .......................................................................V.1V.1.1General description ...........................................................................V.1V.1.2Nautical accessibility .........................................................................V.3V.1.3Port infrastructure ..............................................................................V.6V.1.4Terminal Operations ........................................................................V.11V.1.5Hinterland access ............................................................................V.13V.1.6Planned port improvements.............................................................V.139R8821/R/903617/Rott Tanzania Ports Master PlanFebruary 2009- xxxviii -Final Report 41. V.2CARGO FORECASTS .................................................................... V.14 V.2.1Past Traffic ...................................................................................... V.14 V.2.2Forecasts for Existing Cargoes ....................................................... V.16 V.2.2.1Imports ............................................................................................ V.16 V.2.2.2Exports ............................................................................................ V.17 V.2.3Forecast for New Cargoes .............................................................. V.19 V.2.4Summary of Traffic Forecasts ......................................................... V.20 V.3PORT REQUIREMENTS ................................................................ V.21 V.3.1Nautical requirements ..................................................................... V.21 V.3.2Liquid bulk ....................................................................................... V.22 V.3.3Dry bulk ........................................................................................... V.22 V.3.4Break bulk ....................................................................................... V.22 V.3.5Containers ....................................................................................... V.22 V.4PORT DEVELOPMENT .................................................................. V.23 V.4.1Expansion possibilities .................................................................... V.23 V.4.2Capital costs estimates ................................................................... V.23 V.4.3Recommended development .......................................................... V.24 V.5RECOMMENDED ACTIONS .......................................................... V.26VI MTWARA .......................................................................................................... VI.1 VI.1 PORT DESCRIPTION...................................................................... VI.1 VI.1.1 General description .......................................................................... VI.1 VI.1.2 Nautical accessibility ........................................................................ VI.2 VI.1.3 Port infrastructure............................................................................. VI.3 VI.1.4 Terminal operations ......................................................................... VI.4 VI.1.5 Hinterland access............................................................................. VI.6 VI.1.6 Ongoing projects .............................................................................. VI.6 VI.2 CARGO FORECASTS ..................................................................... VI.7 VI.2.1 Past Traffic ....................................................................................... VI.7 VI.2.2 Forecasts for Existing Cargoes ........................................................ VI.8 VI.2.3 New Projects .................................................................................. VI.10 VI.2.4 Summary Mtwara forecast ............................................................. VI.16 VI.3 PORT REQUIREMENTS ............................................................... VI.16 VI.3.1 Nautical requirements .................................................................... VI.16 VI.3.2 Liquid bulk ...................................................................................... VI.17 VI.3.3 Dry bulk .......................................................................................... VI.17 VI.3.4 Break bulk ...................................................................................... VI.18 VI.3.5 Containers ...................................................................................... VI.19 VI.3.6 Hinterland connections................................................................... VI.19Tanzania Ports Master Plan 9R8821/R/903617/RottFinal Report- xxxix - February 2009 42. VI.4 PORT DEVELOPMENT .................................................................VI.20VI.4.1 Navigational access........................................................................VI.20VI.4.2 Port layout.......................................................................................VI.20VI.4.2.1 Containers ......................................................................................VI.20VI.4.2.2 Break bulk.......................................................................................VI.20VI.4.2.3 Liquid bulk.......................................................................................VI.21VI.4.2.4 Dry bulk...........................................................................................VI.21VI.4.2.5 Layout .............................................................................................VI.21VI.4.2.6 Capital costs estimates...................................................................VI.24VI.4.3 Environmental considerations ........................................................VI.25VI.5 RECOMMENDED ACTIONS..........................................................VI.26VII SMALL COASTAL PORTS ..................................................................................VII.1VII.1PANGANI.........................................................................................VII.2VII.2KILINDONI (MAFIA) ........................................................................VII.5VII.3KILWA............................................................................................VII.10VII.4LINDI..............................................................................................VII.15VII.5MIKINDANI ....................................................................................VII.18VII.6TYPICAL DESIGNS ......................................................................VII.20VII.7RECOMMENDED ACTIONS.........................................................VII.21VIIILAKE VICTORIA .................................................................................................VIII.1VIII.1 INTRODUCTION ............................................................................VIII.1VIII.1.1 Lake Victoria Ports .........................................................................VIII.1VIII.1.2 Shipping services on Lake Victoria ................................................VIII.2VIII.1.3 Ongoing projects ............................................................................VIII.3VIII.2 CARGO FORECASTS ...................................................................VIII.4VIII.2.1 Past traffic.......................................................................................VIII.4VIII.2.2 Drivers of traffic growth...................................................................VIII.7VIII.2.3 Cargo Forecasts Lake Victoria .....................................................VIII.11VIII.3 MWANZA......................................................................................VIII.14VIII.4 MWANZA SOUTH PORT .............................................................VIII.17VIII.4.1 Port description.............................................................................VIII.17VIII.4.1.1 General description ......................................................................VIII.17VIII.4.1.2 Nautical accessibility ....................................................................VIII.17VIII.4.1.3 Port infrastructure .........................................................................VIII.18VIII.4.1.4 Terminal operations......................................................................VIII.21VIII.4.1.5 Hinterland access .........................................................................VIII.22VIII.4.1.6 Ongoing projects ..........................................................................VIII.239R8821/R/903617/RottTanzania Ports Master PlanFebruary 2009- xl -Final Report 43. VIII.4.2 Port requirements......................................................................... VIII.23 VIII.4.2.1 Nautical requirements .................................................................. VIII.23 VIII.4.2.2 Liquid bulk .................................................................................... VIII.24 VIII.4.2.3 Wagon ferry.................................................................................. VIII.24 VIII.4.2.4 Break bulk .................................................................................... VIII.25 VIII.4.2.5 Containers .................................................................................... VIII.26 VIII.4.2.6 Ship building and ship repair........................................................ VIII.26 VIII.4.3 Port development ......................................................................... VIII.27 VIII.4.3.1 Layout........................................................................................... VIII.27 VIII.4.3.2 Capital costs................................................................................. VIII.28 VIII.4.3.3 Environmental considerations ...................................................... VIII.29 VIII.5 MWANZA NORTH PORT ............................................................ VIII.31 VIII.5.1 Port description ............................................................................ VIII.31 VIII.5.1.1 General description ...................................................................... VIII.31 VIII.5.1.2 Nautical accessibility .................................................................... VIII.31 VIII.5.1.3 Port Infrastructure......................................................................... VIII.32 VIII.5.1.4 Terminal operations ..................................................................... VIII.33 VIII.5.1.5 Hinterland access......................................................................... VIII.33 VIII.5.1.6 Planned port improvements ......................................................... VIII.34 VIII.5.2 Port development ......................................................................... VIII.34 VIII.6 BUKOBA ...................................................................................... VIII.35 VIII.6.1 Port description ............................................................................ VIII.35 VIII.6.1.1 General description ...................................................................... VIII.35 VIII.6.1.2 Navigation .................................................................................... VIII.35 VIII.6.1.3 Infrastructure ................................................................................ VIII.35 VIII.6.1.4 Terminal operations ..................................................................... VIII.36 VIII.6.1.5 Hinterland access......................................................................... VIII.37 VIII.6.1.6 Cargo handled.............................................................................. VIII.37 VIII.6.1.7 Ongoing development projects .................................................... VIII.38 VIII.6.2 Port development ......................................................................... VIII.38 VIII.7 KEMONDO BAY........................................................................... VIII.39 VIII.7.1 Port description ............................................................................ VIII.39 VIII.7.1.1 General description ...................................................................... VIII.39 VIII.7.1.2 Navigation .................................................................................... VIII.39 VIII.7.1.3 Infrastructure ................................................................................ VIII.40 VIII.7.1.4 Operations.................................................................................... VIII.40 VIII.7.1.5 Hinterland access......................................................................... VIII.41 VIII.7.1.6 Cargo handled.............................................................................. VIII.41 VIII.7.2 Port Development......................................................................... VIII.41 VIII.8 NANSIO........................................................................................ VIII.42 VIII.8.1 Port description ............................................................................ VIII.42 VIII.8.1.1 General description ...................................................................... VIII.42 VIII.8.1.2 Nautical accessibility .................................................................... VIII.42 VIII.8.1.3 Hinterland connections................................................................. VIII.42 VIII.8.1.4 Infrastructure ................................................................................ VIII.42 VIII.8.1.5 Operations....................................................